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Interconnection Economics of All-IP Networks

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  • Yoon Kiho

    () (Korea University)

Abstract

This paper is an exploratory study on the interconnection economics of All-IP networks. To understand the economics of the yet-to-be-realized All-IP networks, this paper begins with discussing three important features of current IP networks: packet switching, receiver benefit, and two-sidedness. It then develops simple models of interconnection for basic fixed fee settlements and for session-based charges. The analysis shows that interconnection settlements depend on network size, market competitiveness, direct and cross network externalities, and costs. Some policy issues are also briefly discussed.

Suggested Citation

  • Yoon Kiho, 2006. "Interconnection Economics of All-IP Networks," Review of Network Economics, De Gruyter, vol. 5(3), pages 1-15, September.
  • Handle: RePEc:bpj:rneart:v:5:y:2006:i:3:n:4
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    Cited by:

    1. Ruzana Davoyan & Jorn Altmann, 2010. "Investigating the Role of a Transmission Initiator in Private Peering Arrangements," TEMEP Discussion Papers 201043, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
    2. Ruzana Davoyan & Jorn Altmann & Wolfgang Effelsberg, 2010. "Intercarrier Compensation in Unilateral and Bilateral Arrangements," TEMEP Discussion Papers 201041, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.
    3. Ruzana Davoyan & Jorn Altmann & Wolfgang Effelsberg, 2010. "Exploring the Effect of Traffic Differentiation on Interconnection Cost Sharing," TEMEP Discussion Papers 201042, Seoul National University; Technology Management, Economics, and Policy Program (TEMEP), revised Jan 2010.

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